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Acquisition Boosts AMN Revenue

March 09 2011

AMN Healthcare Services Inc. (NYSE: AHS), a San Diego-based healthcare staffing company, reported fourth-quarter revenue rose 52.3 percent  to $220 million, driven in part by the company's acquisition of Medfinders in September. On an organic, same-store basis, consolidated revenue was rose 9 percent year over year.

"Clients are recognizing the value and differentiation of our comprehensive MSP offering, and since announcing the acquisition, AMN has been awarded 20 new MSP contracts of varying sizes with estimated annual gross spend under management of over $45 million," said Susan R. Salka, president and CEO.

"We continue to experience positive signs of market recovery in our largest service line, travel nurse staffing, which delivered organic, same-store revenue increases of 11 percent sequentially and 25 percent over prior year," Salka said. "This represents four consecutive quarters of organic, same-store sequential revenue growth, and the second consecutive quarter of year-over-year growth. We are also encouraged by the improving trends we are seeing in our locum tenens business."

Fourth-quarter revenue for the nurse and allied healthcare staffing segment rose 72.0 percent to $127.3 million. Locum tenens revenue rose 11.2 percent to $69.4 million. Fourth-quarter physician permanent placement services revenue rose 12.9 percent to $9.3 million. Revenue for the home healthcare services segment, new due to the acquisition of Medfinders, was $14.3 million in the fourth quarter, its first full-quarter performance.

Gross margin in the fourth quarter of 2010 fell to 28.1 percent from 28.4 percent in the year-ago quarter. Net loss was $1.6 million, compared with net loss of $2.7 million in the year-ago quarter.

The company noted $1.2 million in bad debt expense related to a locum tenens client in the fourth quarter, as well as acquisition and integration costs of $2 million and $6 million for the fourth and third quarters, respectively. The company also recorded a charge of $1.1 million associated with the finalization of the goodwill impairment analysis related to pre-acquisition goodwill.

For the full year 2010, revenue fell 9.3 percent to $689.2 million.

Full-year gross margin was 27.8 percent, compared with 26.9 percent for 2009. An improvement in gross margin within the nurse and allied healthcare segment and the addition of the higher-margin Medfinders business drove the improvement in overall gross margin, the company noted.

Net loss was $52.0 million for the year, compared with net loss of $122.2 million in 2009.

Looking forward, the company expects first-quarter revenue to be between $223 million and $227 million. Gross margin is anticipated to remain steady with the prior quarter.

AMN Healthcare Services Inc. (NYSE: AHS)
For the fourth quarter ended Dec. 31, 2010, compared with the same period in 2009.
Revenue: $220.3 million, +52.3 percent
Net loss: $1.6 million vs. net loss of $2.7 million

For full-year 2010, ended Dec. 31, 2010, compared with the previous year.
Revenue: $689.2 million, -9.3 percent
Net loss: $52.0 million vs. net loss of $122.2 million


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